AL SB342

Excludes federal tax credits and advance refunds received under the Coronavirus Aid, Relief, and Economic Security Act from Alabama individual income taxation.

For taxable year 2020, excludes these federal credits and advance refunds from calculations used to determine a taxpayer's federal income tax deduction under Section 40-18-15.

Exempts loan forgiveness amounts granted under the federal CARES Act from Alabama income taxes (Chapter 18, Title 40) and financial institution taxes (Chapter 16, Title 40) to the same extent they are exempt from federal income tax.

Allows expenses paid with forgiven loan amounts (such as payroll or rent) to remain deductible for Alabama tax purposes if they remain deductible under federal income tax calculations.

Takes effect immediately upon passage and approval by the Governor.